Kenyans will tomorrow join the rest of the world to mark this year’s Labour Day, amid high expectations of an increase in minimum wage.
Labour Day celebrations will be held against the backdrop of heightened concerns over a sagging economy and run-away inflation.
Central Organisation of Trade Unions (Cotu) secretary general Francis Atwoli has set the ball rolling, with a demand of a 15 per cent minimum wage increment.
Speaking during Cotu’s pre-Labour Day Celebrations at St Stephen’s ACK Church on Jogoo Road, Nairobi, he said workers are pushing for a 15 per cent general wage increase in exchange for remittance of the 1.5 per cent housing levy from their salaries.
Although the Economic Survey report, 2019, has showed that Gross Domestic Product (GDP) grew by 6.3 per cent in 2018 up from 4.7 per cent in 2017, Kenyans said they are yet to feel the impact of the performance.
Questions have emerged on why the seemingly stable economic growth reported over the years does not reflect on the wealth of most citizens.
Kenya National Bureau of Statistics findings are that three-quarters of Kenyans in the formal sector earn below Sh50,000, representing 1.9 million people as of 2017.
This includes those at the bottom wage bracket, earning below Sh20,000 a month, mainly constituting house servants, drivers, secretaries and low-ranking teachers and police officers.
The earnings, compounded by inflation which has averaged at 9.61 per cent since 2005, could inform the scepticism about reported economic growth.
Last year, President Uhuru Kenyatta announced a five per cent rise in minimum wage, which came amidst calls to resolve several strikes called by different sectors.
“In recognition of the good work done by our workers and cognizant of the 4.8 per cent rate of inflation this year (2018), I hereby declare a corresponding five per cent increase of minimum wage,” Labour and Social Protection Cabinet secretary Ukur Yattani announced on the President’s behalf.
“The upsurge in industrial unrest is tainting our country’s name. We have to ensure that interests of Kenyans are served and this is only possible through negotiations,” he added.
Uhuru said structured dialogue between parties involved in the disputes would solve the country’s labour challenges and help the government focus on economic growth as envisioned in the International Labour Organisation Statute No 144.
The five per cent increment meant that basic minimum monthly wages, exclusive of housing allowances, would rise from between Sh320 and Sh1,458 for workers in Nairobi, Mombasa and Kisumu counties.
Kenya Association of Manufacturers last year raised concerns that the industry was yet to pick pace following the 2017 General Election.
In 2017, the President had issued a directive to increase the minimum wage by 18 per cent. I am aware that workers in the lower income bracket are struggling to afford basic necessities,” Uhuru said.